The development of a brand new Sydney suburb has the potential to reshape the city’s property market.
The old grazing land in Box Hill is being converted into a subdivision – a site that will eventually offer 2,000 lots for new homes.
“At the height of the boom we would have sold out in a day virtually, there is no doubt about that,” The Hills Carmel property development consultant Bob Welsh said.
A new suburb is planned and they’ll build a new shopping centre to go with it - prices start at just below $400,000.
“The potential here for an additional 10,000 homes should ease the property market,” member of Castle Hill Ray Williams said.
A market that some say is more likely to crash rather than ease because of a looming glut of new apartments in the next three years.
“I wouldn’t be surprised to see a 30-40% fall in apartment prices,” Montgomery Investment Management chairman and chief investment manager Roger Montgomery said.
That prediction is based on a similar oversupply in the US, just before the financial crisis.
Too many new apartments here are also expected to affect prices for all housing.
“If you drop a pebble in the middle of a pond, the ripples eventually affect the whole pond and that is going to be true of the property market,” Montgomery said.
But here right now they are literally moving hills for houses and over the next 15 years it is estimated that an extra 1 million people will move into Sydney’s west, needing 600,000 homes.
“There is no potential for a glut in the house and land market for detached housing in this area,” Eden Brae Homes land manager Lachlan McGregor said.
A third of the sites at the new and up and coming Sydney suburb had already been snapped up prior to yesterday’s sales.